D&D Note (9.22.2020) ~ Dollar Continues To Rise And Tech Lifts Markets Into The Green ~ #StockMarket

D&D Note (9.22.2020) ~ Dollar Continues To Rise And Tech Lifts Markets Into The Green ~

The Dollar continued to rally today after being in a downward trend since the pandemic started. This has put pressure on commodities such as Gold which is priced in dollars.

The equity market has been sensitive to dollar shifts as well but that didn’t stop the rally today mostly led by Tech with the Financials not participating.

Amazon rises over 5% after the stock was upgraded to Outperform from Market Perform at Bernstein with a price target of $3,400.

Delta Airlines will wait until after November now to decide wether to furlough pilots according to union.

Tesla falls after Elon Musk tempers expectations for delivery. Today is their first Battery Day event and again Elon has tempered expectations that the new technology won’t be in full production until 2022.

Carvana rallies 29% after the company announced they expect record results for third quarter.

There are now 35 states on the New York Covid list meaning travelers from those 35 states to New York must quarantine for 14 days upon entering the state.

The Lockdown Trade is coming back into vogue as investors begin to fear the U.S. and Europe could be headed for another lockdown as the virus surges.

While we are not likely to have a nationwide lockdown again in the U.S. we are becoming more likely to have restrictions such as no food or drink after 11:00pm or even city specific lockdowns.

The Lockdown Trade combines the Stay At Home Trade (which has a focus on the digital cloud economy and e-learning) + Food stocks that thrived in last lockdown.

Overall we have seen the digital cloud economy fast forward 5 years of growth all into this year.

Lockdown Trades D&D currently holds:

Amazon

Shopify

PayPal

Johnson & Johnson

UnitedHealth

Barrick Gold

Apple

Salesforce

Microsoft

Lockdown Trades D&D favors but doesn’t yet have a position in:

Chewy

Zoom Video

Crowdstrike

Netflix

Spotify

Chegg

NVIDIA

Verizon

Home Depot

Equinix

Other Lockdown Trades include:

Carvana

Campbells Soup

Wingstop

Domino’s Pizza

Palo Alto Networks

Docusign

Peleton

Square

Fastly

Livongo Health

Walmart

Costco

Target

Kimberly-Clark

Proctor & Gamble

Hormel Foods

JM Smucker

General Mills

Mondelez International

McCormick

RingCentral

ZScaler

Teledoc Health

Beyond Meat

Trade Desk

Take-Two Interactive

Activision Blizzard

ETSY

Electronic Arts

Conagra Brands

Markets today closed near their highs of the day.

DOW up 0.52%

S&P 500 up 1.05% (3315.57)

NASDAQ up 1.71%

VIX down -3.31% to 26.86

Oil up 0.74% to $39.60 a barrel.

Gold down -0.21% to $1906.40 an ounce.

The Norte Dame football game postponed after 7 players test positive for Covid-19.

The U.S. accounts for 21% of all virus cases despite only having 4% of the worlds population. The U.S. has reported 61.09 deaths per 100,000 residents making it the country with the 11th most deaths per capita.

Deaths in America have outpaced the number of soldiers lost during WWI and Vietnam War combined.

Global Virus cases: 31.43 million+

Global Virus deaths: 967,035+

U.S. Virus cases: 6.88 million+

U.S. Virus deaths: 200,541+

~ Dave James / Principal Trader and Market Strategist